S&P 500 vs. Surprise Index
The gap between the S&P 500 gains and the level of economic disappointments (the amount of data that has fallen short of analysts’ expectations) has widened to its highest level on record, according to MarketWatch (citing data from Nordea Markets).
The U.S. economy created 224,000 non-farm jobs in June, exceeding economists’ forecast of about 170,000. However, the Institute for Supply Management June manufacturing index registered at 51.7 percent, a decrease of 0.4 percentage point from the May reading of 52.1 percent. Readings over 50 percent indicate expansion. The index reached a 14-year peak of 60.8 percent in August 2018 but has fallen three months in a row, according to MarketWatch.
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